1) Loan Modifications

The Home Affordable Modification Program (HAMP) is designed to help as many financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.

Borrower eligibility is based on meeting specific criteria including:

a) Borrower is delinquent on their mortgage or faces imminent risk of default
b) Property is occupied as borrower's primary residence
c) Mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

After determining a borrower's eligibility, a servicer will take a series of steps to adjust the monthly payments to 31% of a borrower's total pretax monthly income.

- First, reduce the interest rate to as low as 2%,
- Next, if necessary, extend the loan term to 40 years,
- Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

Traditional Loan Modifications

A traditional loan modification is your next best option if you don't qualify for HAMP. Requirements vary from one lender to another. Some banks tailor their traditional loan modifications according to HAMP guidelines, but most take it as an opportunity to set their own rules as they see fit

Traditional Loan Modification Guidelines

a) Late on Mortgage Payments: Being current on your payments may disqualify you from applying as you bank does not see you as a priority.
b) Hardship: You must be able to document a hardship situation which has caused you to fall behind / no longer afford your mortgage payment.
c) Verifiable Income: You must be able to prove your income through paystubs, W-2's, tax returns, and profit and loss statements if you are self employed.
d) Type of property: Is it your primary residence and/or investment property? Either or will enable you to apply for a loan modification.

2) Legal Fee Assistance

3) Temporary Housing Program